Question: Need help with 11-29 and 11-31. 11-29. Cost Allocation: Direct Method University Printers has two service departments, Maintenance and Personnel, and two operating departments, Printing

11-29. Cost Allocation: Direct Method University Printers has two service departments, Maintenance and Personnel, and two operating departments, Printing and Developing. Management has decided to allocate maintenance costs on the basis of machine-hours in each department and personnel costs on the basis of labor-hours The following data appear in the company records for the current period. Required Use the direct method to allocate these service department costs to the operating departments. 11-30. Cost Allocation: Step Method Refer to the data for Caro Manufacturing in Exercise 11-27. Required Use the step method to allocate the service costs, using the following: a. The order of allocation starts with Maintenance. b. The allocations are made in the reverse order (starting with Cafeteria). 11-31. Cost Allocation: Step Method Refer to the data for University Printers in Exercise 11-29. Required Allocate the service department costs using the step method, starting with the Maintenance Department. What effect does using this method have on the allocation of costs
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
